T-Bill Subscription For 364-Day Paper Hits 115.9% In January

T-bill auctions recorded an under subscription during the month of January 2021, with the overall subscription rate coming in at 67.3 percent, a rise from 54.8 percent recorded in the month of December 2020.

The highest subscription rate was in the 364-day paper, which came in at 115.9 percent, an increase from 50.4 percent recorded the previous month.

The subscription for the 182-day and 91-day papers declined to 33.1 and 45.5 percent from 40.2 and 94.5 percent recorded in the month of December 2020, respectively.

The yields on the 364-day, 182-day, and 91-day papers rose by 0.2, 0.3, and 0.1 percentage points to 8.6, 7.6, and 7.0 percent respectively.

The T-bills acceptance rate declined by 0.6 percent points to 97.6 percent during the month, compared to 97.1 percent recorded the previous month, with the government accepting a total of 78.8 billion shillings of the 80.8 billion shillings worth of bids received.

At the same time, the T-bills subscription rate during the week declined with the overall subscription rate coming in at 66.2 percent, from 84.5 percent recorded the previous week. This is attributed to; the continued tightening of liquidity in the money markets.

The highest subscription rate was in the 364-day paper which declined to 134.2 percent from 172.2 percent recorded the previous week.

The subscription for the 182-day paper also declined to 19.7 percent from 53.7 percent recorded the previous week, while the 91-day paper increased to 12.7 percent from 9.2 percent recorded the previous week.

The yields on 364-day and 182-day papers rose by 11.5 bps and 7.0 bps, respectively, to 7.6 and 8.6 percent, while the 91-day paper declined by 8.6 bps to 7.0 percent. The government’s accepted all the bids received of 15.9 billion shillings.

In the money markets, 3-month bank placements ended the week at 7.4 percent (based on what we have been offered by various banks), while the yield on the 91-day T-bill declined by 8.6 bps to 7.0 percent.

The average yield of the Top 5 Money Market Funds remained unchanged at 10.0 percent from last week. The yield on the Cytonn Money Market declined marginally by 10.0 bps to 10.8 percent from the 10.9 percent, recorded the previous week

READ: T-Bills End October In The Red But Slightly Above September